Scribd
Upload
72 views15 pages

Economics 121: Introduction To Industrial Organization and Public Policy Professor Aaron Edlin

This document provides an overview and outline of an economics course on industrial organization and public policy. It introduces the professor, teaching assistants, and learning goals. These goals include understanding imperfect competition, solving problems analyzing competition, and analyzing effects of antitrust policy. The course will introduce industrial organization concepts like market structure, conduct, and performance and how they relate. It will use examples like the iBook store and airline mergers to study firm strategies and public policies aimed at improving market outcomes.

Uploaded by

Matthew Ryan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
72 views15 pages

Economics 121: Introduction To Industrial Organization and Public Policy Professor Aaron Edlin

This document provides an overview and outline of an economics course on industrial organization and public policy. It introduces the professor, teaching assistants, and learning goals. These goals include understanding imperfect competition, solving problems analyzing competition, and analyzing effects of antitrust policy. The course will introduce industrial organization concepts like market structure, conduct, and performance and how they relate. It will use examples like the iBook store and airline mergers to study firm strategies and public policies aimed at improving market outcomes.

Uploaded by

Matthew Ryan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
You are on page 1/ 15

Economics

121:
Introduction to Industrial
Organization and Public Policy

Professor Aaron Edlin


Outline
Introductions
Syllabus
Learning Goals & Notes on Course
Introduction to Industrial Organization
Overview of IO
Sample application
guaranteed-low-price policies
Competition
The 121 Teaching Team:

Professor:
Aaron Edlin
Office Hours: Fridays 10:30-11:50 AM in 589 Evans
http://works.bepress.com/aaron_edlin/
GSIs:
Zhenia Iarmosh
Roman Zarate
Syllabus overview
Learning Goals for 121
Understand and explain how imperfect competition differs
from perfect competition.

Solve problems analyzing competition in various settings

Analyze effects of antitrust or other government policy on


competition and outcomes.

Understand and explain how assumptions relate to


conclusions in I-O models.
Notes on Course
Lectures dont follow textbook
Textbook is jumping off point
Exams follow lectures and problem sets
Slides skeletal outline
Thoroughness over speed.
Problem solving not memorization
Overview of
Industrial Organization (IO)
What does IO study?
iBook store
Intel Chips
Microsoft
Airline Mergers
IO studies imperfect competition
relationships between structure, conduct, and
performance of industry
Firm strategies
Public policies geared to improve on market outcomes
Structure, Conduct, Performance
Market Structure
# sellers, buyers
Entry barriers
Product Differentiation
Conduct: Actions of Firms
Collusion
exclusionary conduct such as predatory pricing (temporary low
prices to drive out other firms)
Price discrimination
Performance
Price levels, Production efficiency, Allocative efficiency.
Simple Model
Market Structure ConductPerfomance.
Basic Structure-Conduct-Performance
Model
Examples? What conduct might you expect? Prices high or low?

Many sellers One/Few sellers

Many buyers 1. 2.

One/Few 3. 4.
buyers
Basic Structure-Conduct-Performance
Model
What conduct might you expect?

Many sellers One/Few sellers

Many Conduct Conduct


buyers

One/Few Conduct Conduct


buyers
Basic Structure-Conduct-Performance
Model
Prices high or low?

Many sellers One/Few sellers

Many Performance Performance


buyers

One/Few Performance Performance


buyers
Complications
Arrows go every which way
Sunk costs & Predatory Pricing Barriers to entry
AdvertisingProduct differentiation
High profitsEntry
Government Policies and Basic conditions should
be added to Structure, Conduct, Performance
Model.
I-O studies
the relationships (s)
Surprises (high prices despite many sellers: e.g., cartel
of NASDAQ market makers in 1990s).
Takeaways from Overview
I-O studies
imperfect competition &
relationships between govt policy, structure, conduct,
and performance
More sellers and more buyers
usually means less collusion, more competitive pricing
Few buyers or few sellers
usually means imperfect competition, more collusion,
and non-competitive pricing

You might also like